According to TechFlow, Morgan Stanley said that from a technical perspective, China's CSI 300 Index may still have about 10% room for growth in the short term.
The forecast is based on an analysis of borrowing costs under China’s re-lending program (2.25%) and the current dividend yield of the CSI 300 index (2.46%), strategists led by Laura Wang wrote in a Sept. 26 note.
Morgan Stanley said the Politburo meeting and the stimulus package announced earlier this week by the central bank and other regulators were very positive. They added that the real surprise for the market was the market stabilization measures, which were unprecedented.
The bank pointed out that the most important thing now is to follow up quickly and clarify the details and timetable of execution and implementation. Chinese stocks ushered in their best week in a decade due to the Politburo's commitment.